Officials Eye Expanding Howard County's Homeownership Programs, Public Meeting Planned

HOWARD COUNTY, MD — Draft regulations designed to expand Howard County’s homeownership programs have been released and residents can weigh in on them at a public hearing April 2.

"Homeownership provides an opportunity to build equity, generation wealth and generate income. Thanks to these vital homebuying assistance programs, we are expanding opportunity for more families to be able to call Howard County home, to put down roots and to live out their dreams of owning a home. I encourage everyone to attend this public hearing to let us know just how we can further improve these programs to make everyone’s homeownership dreams a reality," Howard County Executive Calvin Ball said.

The public hearing will start at 6 p.m. April 2 and be held in room 212 of DHCD’s offices at 9820 Patuxent Woods Drive in Columbia.

The proposed regulation changes include:

1. Reducing the interest rate on all SDLP loan types to a cap of three percent. This will allow homeowners to pay less interest and retain more equity when they sell their home.
2. Adding a principal and interest forgiveness provision for the Homestarter loan type at five, 10 and 15 years. This will allow homeowners to build greater generational wealth in their homes and reduce the amount owed to the County when they sell their home.
3. Removing the asset requirement on the Workforce Initiative Loan. A potential homebuyer applying for a Workforce Initiative Loan will be eligible for up to $4,300 in a forgivable loan without asset qualification if they work in Howard County and meet the household income requirements.

Potential homebuyers and realtors interested in learning more about this program should contact an SDLP approved lender for application details and assistance. Funds currently are available to participate in this program.

DHCD’s RLF program provides loans to income-eligible persons to help pay for home improvements, renovations or repairs. These loans can help homeowners make repairs to their homes, such as new heating and air conditioning systems, roof replacement and bathroom upgrades, to improve energy efficiency and accessibility. The proposed regulation changes include:

1. Increasing the maximum loan amount to $50,000.
2. Establishing three loan tiers based on household income.
   • Tier 1 borrowers can earn up to 30 percent Area Median Income (AMI).
     • For Tier 1 borrowers, the loan interest rate is zero percent, there are no credit score requirements or monthly payments due, and the loan balance is forgivable after five years.
   • Tier 2 borrowers earning up to 50 percent AMI.
     • For Tier 2 borrowers, the loan interest rate is one percent, there are no monthly payments and loan is repaid when the home is sold.
3. Tier 3 borrowers earning up to 80 percent AMI.
   • For Tier 3 borrowers, the loan interest rate is two percent and monthly payments are required until the loan is paid in full.

"Reducing the interest rate on the SDLP loans and adding a forgiveness provision for the Homestarter loan will make homeownership more attainable for potential buyers that want to move from renting to homeownership. The changes to the rehabilitation loan fund program will help existing homeowners, especially low-income seniors and persons with disabilities, qualify for these loans to make renovations that can improve the functionality and safety of their home," said Kelly Cimino, director of the Howard County Department of Housing and Community Development.

Homeowners interested in applying for the RLF program are encouraged to contact DHCD’s Loan Rehabilitation Coordinator at 410-313-6333 or email tshelton@howardcountymd.gov for assistance with submitting their loan rehabilitation application(link is external). Funds are currently available to participate in this program.